HMA sweetens Munroe deal ahead of big meeting tonight

Published: Thursday, April 18, 2013 at 1:51 p.m.

Last Modified: Thursday, April 18, 2013 at 1:51 p.m.

Health Management Associates said it will make a $1.5 million community donation if its allowed to lease Munroe Regional Medical Center. It's also disbuting that a recent competing offer is equal to its own.

Facts

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HMA said it will donate $1 million to Interfaith Foundation in Ocala and another $500,000 to the Munroe Regional Medical Center volunteer organization if hospital owners select the healthcare compnay to operate the 421-bed hospital.

HMA is also disputing that Duke LifePoint's most recent $200 million offer is on par with its $200 million lease offer.

HMA Senior Vice President Alan Levine said that his $200 million offer allows Marion County Hospital District trustees to keep any of the hospital's working capital if the hospital were to be handed over to HMA.

Duke LifePoint's latest $200 million, 40-year lease offer submitted to trustees last week incorporates the wording "including net working capital." With about $31 million in working capital, Levine said HMA's offer is still $30 million above waht Duke LifePoint brings to the table.

"HMA's offer has been, from the beginning, $200 million, and our proposal has been that Munroe keeps its working capital," Levine wrote the Star-Banner in an e-mail Wednesday.

Hospital District trustees are scheduled to meet 5 p.m., April 18 at Munroe's auxiliary conference room to decide between the two offers. Duke LifePoint representatives are slated to be on hand to explain the details of their latest offer.

Levine also cited that HMA's offer to invest at least 4 percent of net revenue each year for Munroe' maintenance and strategic capital outweighs Duke Life Point's minimum 2 percent offer.

Levine said that will mean an additional $180 million for hospital improvements for the span of the 40-year lease.

However, that money will stay with the hospital, not with trustees.

Duke LifePoint did not immediately return telephone calls for this story.

Munroe is owned by the state-sanctioned Marion County Hospital District and is overseen by seven trustees who are appointed by the County Commission.

The trustees lease the hospital to Munroe Regional Health System Inc., which is overseen by a 13-member board, some of whose members also are district trustees.

Without property tax support — a ballot measure failed in November — Munroe leadership says it must lease the hospital to a separate company to invest and keep the hospital competitive.

Once trustees lease the hospital, they plan to oversee the lease payment, using it to fund community health issues and initiatives.

HMA is partnering with Shands at the University of Florida in its offer to lease Munroe. LifePoint has a partnership with Duke University Medical Center.

Meanwhile, it looks HMA will not increase its $200 million offer to trustees.

In responding to Duke LifePoint's increased offer, HMA Executive Vice President Pete Lawson wrote to Munre officials this week.

"Our offer was earnest, and well thought out. We know our home state, and we know what we can do to

deliver results for the Munroe family. Others may have had doubts about their capability to deliver higher

value, which may account for the significant variation in the offers that has occurred," Lawson wrote. "So, despite last minute changes to the other bids which were intended to compete with our offer, we believe our offer remains the most sincere and compelling."

<p>Health Management Associates said it will make a $1.5 million community donation if its allowed to lease Munroe Regional Medical Center. It's also disbuting that a recent competing offer is equal to its own.</p><p>HMA said it will donate $1 million to Interfaith Foundation in Ocala and another $500,000 to the Munroe Regional Medical Center volunteer organization if hospital owners select the healthcare compnay to operate the 421-bed hospital.</p><p>HMA is also disputing that Duke LifePoint's most recent $200 million offer is on par with its $200 million lease offer.</p><p>HMA Senior Vice President Alan Levine said that his $200 million offer allows Marion County Hospital District trustees to keep any of the hospital's working capital if the hospital were to be handed over to HMA.</p><p>Duke LifePoint's latest $200 million, 40-year lease offer submitted to trustees last week incorporates the wording "including net working capital." With about $31 million in working capital, Levine said HMA's offer is still $30 million above waht Duke LifePoint brings to the table.</p><p>"HMA's offer has been, from the beginning, $200 million, and our proposal has been that Munroe keeps its working capital," Levine wrote the Star-Banner in an e-mail Wednesday.</p><p>Hospital District trustees are scheduled to meet 5 p.m., April 18 at Munroe's auxiliary conference room to decide between the two offers. Duke LifePoint representatives are slated to be on hand to explain the details of their latest offer.</p><p>Levine also cited that HMA's offer to invest at least 4 percent of net revenue each year for Munroe' maintenance and strategic capital outweighs Duke Life Point's minimum 2 percent offer.</p><p>Levine said that will mean an additional $180 million for hospital improvements for the span of the 40-year lease.</p><p>However, that money will stay with the hospital, not with trustees.</p><p>Duke LifePoint did not immediately return telephone calls for this story.</p><p>Munroe is owned by the state-sanctioned Marion County Hospital District and is overseen by seven trustees who are appointed by the County Commission.</p><p>The trustees lease the hospital to Munroe Regional Health System Inc., which is overseen by a 13-member board, some of whose members also are district trustees.</p><p>Without property tax support — a ballot measure failed in November — Munroe leadership says it must lease the hospital to a separate company to invest and keep the hospital competitive.</p><p>Once trustees lease the hospital, they plan to oversee the lease payment, using it to fund community health issues and initiatives.</p><p>HMA is partnering with Shands at the University of Florida in its offer to lease Munroe. LifePoint has a partnership with Duke University Medical Center.</p><p>Meanwhile, it looks HMA will not increase its $200 million offer to trustees.</p><p>In responding to Duke LifePoint's increased offer, HMA Executive Vice President Pete Lawson wrote to Munre officials this week.</p><p>"Our offer was earnest, and well thought out. We know our home state, and we know what we can do to</p><p>deliver results for the Munroe family. Others may have had doubts about their capability to deliver higher</p><p>value, which may account for the significant variation in the offers that has occurred," Lawson wrote. "So, despite last minute changes to the other bids which were intended to compete with our offer, we believe our offer remains the most sincere and compelling."</p><p><i>Reach Fred Hiers at fred.hiers@starbanner.com and 352-867-4157.</i></p>